According to CoinDesk, Ethereum is currently experiencing a positive trend, offering promising signals for its native token, ether (ETH). The cryptocurrency's price chart reveals a pattern similar to the one observed in bitcoin (BTC) before its significant rally last month.
Ether's three-line break chart, which eliminates daily fluctuations and erratic price changes, indicates that the eight-month corrective trend marked by lower highs and lower lows has concluded. The broader upward trend from the October 2023 lows near $1,500 has resumed. Such breakouts often lead to a bullish cascade effect, attracting new buyers and pushing out sellers who previously limited price increases during consolidation.
Bitcoin experienced a comparable breakout in mid-October, leading to a rally that reached record highs above $73,000. Since then, BTC has surged by 45% to over $96,000, as reported by TradingView and CoinDesk. While traders use price patterns to assess trend strength and changes, these patterns do not always perform as expected, and fundamental factors can significantly influence trends.
Recent activity on the Ethereum network supports the bullish outlook for ETH. The number of "blobs" posted on the Ethereum network by layer 2 protocols increased in November. Posting blobs incurs variable fees paid in ether, which are burned like regular transaction fees, reducing ETH's market supply.
Additionally, mainstream investor interest in ether is growing. On Friday, the nine spot ether ETFs listed in the U.S. saw inflows totaling $332.9 million, marking the highest single-day tally since their inception, according to Farside Investors.
Miyuki
